According to new data from national property broker Redfin, a record number of homebuyers nationwide are actively looking to move to a different area of the country. Approximately 25.4% exactly and this figure has risen from 23% in 2022, a significant increase from pre-pandemic levels of less than 20%.
The driving force behind this surge in relocations is the impact of high mortgage rates, which have made housing more expensive than ever. As a result, homebuyers are gravitating towards relatively affordable regions, with Phoenix, Las Vegas, and Miami emerging as the most popular markets for those looking to move. Despite these areas facing increasing climate risks such as heat, drought, and flooding, their affordability continues to attract buyers. Opportunity continues to also bring investors and house flippers to these markets who seek to provide adequate housing opportunities.
Data indicates a shift in buyer preferences, with a larger share of homebuyers opting to move to a new metro area. While the overall buyer market has decreased by 7%, the proportion of buyers moving out of the market has reached a record high and has given new hope for residential real estate investors despite much of the “doomsday” housing market rhetoric.
For markets in Arizona and Florida, the allure remains strong and their relative costs remain competitive. Last quarter a typical home in Phoenix sold for half the rate of a typical home in Seattle, Phoenix’s most popular relocation origin.
Affordability continues to be paramount as why frame out the year and housing options in different metro areas provide options for homebuyers and investors who are looking to remain well-positioned financially.